Contemporary Issues in Business Management: A Case Study of Tesla

This report discusses contemporary issues in business management with a focus on Tesla. It identifies five contemporary business issues and critically analyzes two key issues, CSR practices and sustainability practices, and their impacts on Tesla.

Business issues in
business management
(Tesla )

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Brief introduction about the organisation, identify five contemporary business issues and
very briefly discuss them........................................................................................................1
2. Out of these 5 focus on 2 main issues to critically analyse them.......................................3
3. Critically evaluate the impacts of the same two issues on Tesla. Here please relate strictly to
Tesla.......................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Contemporary issues are considered as the problems which are recently impacting the
individuals or areas as well as which is unsolved. Moreover, these are the challenges that
incorporate management of human resource, manufacturing and practices, marketing and
finances problems atmosphere the success of firm as well as business as whole. At similar
period, businesses are tackling various difficulties related to ethical and legal problems that
confront business practices (Abor, Adjasi and Lensink, 2020). For accomplishing this report,
TESLA is undertaken, which is known to be one of the leading vehicle manufacturers.
Moreover, it is an American e- vehicle as well as clean energy firm that is based in Palo Alto,
California, US. In addition to this, respective entity also manufactures as well as develops
electric cars, battery energy storage from home to grid scale, solar roof tiles, solar panels and
associated goods or services. The topics which are going to be discussed in this report are
overview of organisation and identification of five contemporary business issues. Critical
analysis of two key issues and their impacts upon TESLA is also discussed in this report.
MAIN BODY
1. Brief introduction about the organisation, identify five contemporary business issues and very
briefly discuss them.
TESLA is known to be one of the leading vehicle manufacturers. Moreover, it is an
American e- vehicle as well as clean energy firm that is based in Palo Alto, California, US. In
addition to this, respective entity also manufactures as well as develops electric cars, battery
energy storage from home to grid scale, solar roof tiles, solar panels and associated goods or
services. Additionally, this is developed in year 2003 by American entrepreneurs named as
Martin Eberhard and Marc Tarpenning as well as was named after Serbian American inventor
called Nikola Tesla. Along with this, Tesla motors were formulated to form electric sports cars.
Currently, TESLA develops not only whole e-vehicles but also infinitely scalable clean energy
formation and products storage. It also has faith that the faster world stops depending upon
fossils fuels as well as moves towards zero emission future. Apart from this, TESLA have
around 70, 757 staffs (About Tesla, 2021).
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(Tesla Revenue Breakdown And Estimated Sales Growth, 2021)
On yearly basis, TESLA’s automotive revenue develops bulk of their overall sales at $ 27
billion in year 2020. Also, they would still be the largest contributor of revenue to firm at $ 38,54
and 76 billion for fiscal years 2021, 2022 and 2023 accordingly. Whereas both Tesla’s services
as well as energy revenue are ranked as second at $ 2.3 billion as well as 2.0 billion within fiscal
year , 2020 (Tesla Revenue Breakdown And Estimated Sales Growth, 2021). Furthermore,
TESLA has to face various issues for performing the business in effective and efficient way. So,
some of the contemporary business issues are identified which are described below:
 Artificial intelligence: This is undertaken as the competency of robot or computer
controlled through computer for performing the tasks which are generally done through
humans as they needs human intelligence as well as discernment.
 CSR practices: Corporate social responsibility is undertaken as the management aspects
where by firms integrate environmental as well as social concerns within its business
practices and interactions with its stakeholders (Chang and Vo, 2020).
 Sustainability practices: Sustainability concentrates upon meeting the requirements of
current without cooperating the capability of upcoming generations for meeting its
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desires. Moreover, Sustainable practices are considered as the procedures services that
employ for maintain the qualities which are valued within physical atmosphere.
 Fast innovation: Innovation is undertaken as the idea which has been transformed within
practical reality. For any venture, it is a goods, procedures or business aspects or
combinations which have been activated within market areas as well as develops new
profitability and growth of entity. Additionally, fast innovation surprises rivals and so this
aid in obtaining competitive benefits through enhancing whole speed to market that in
turn might enhance profit.
 Corporate governance: It is considered as the system through that entities are guided as
well as controlled. Mainly, the board of directors are accountable for governance of its
firms.
2. Out of these 5 focus on 2 main issues to critically analyse them.
CSR practices as well as sustainability practices have essential impacts upon business. As
corporate social responsibility is undertaken as the management aspects where by firms integrate
environmental as well as social concerns within its business practices and interactions with its
stakeholders (Flash and et. al., 2020). While, Sustainability concentrates upon meeting the
requirements of current without cooperating the capability of upcoming generations for meeting
its desires. Moreover, Sustainable practices are considered as the procedures services that
employ for maintain the qualities which are valued within physical atmosphere. In respect of
TESLA’s CSR, they incorporate minimising the dependence of petroleum cars through
facilitating green energy source to power car engines. Additionally, the e-cars manufacturer
essentially decreases carbon emission within environment, thereby hostility change in climate,
global warming as well as acidic rainfall (Трацевская, 2021). In addition to this, TESLA always
seeks towards sustainable energy to power their facilities. It attains this through utilising solar
energy systems as well as battery storages.
Some CSR and sustainability practices of TESLA are discussed below:
Employee health and safety at Tesla
 Tesla’s production staffs are needed to participates into multi day training sessions before
ever setting foot upon factory floor.
 It also facilitates zero cost heath cares as well as advantages to whole time staff positions.
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 The staff involvements into minimisation of health risk evaluated through workers
recommendations, effective observation, identify it fix session as well as ongoing
development ideas have enhanced from 3000 involvements in year 2017 to almost 23,000
Into year 2019 (Impact of TESLA’s CSR REPORT, 2021).
Tesla and gender equality and minorities
 It was recognised as effective employer for Diversity within year 2019 through Forbes.
 The manufacturer of electric bar attempts to assure a fair representation of traditions
underrepresented societies within their personnel. As this is shown into below figure:
 Also, the representation of gender is a problem at TESLA. Also, only around 21% of US
staff are female as well as into positions of leadership females highlights as low as 17%
(Impact of TESLA’s CSR REPORT, 2021). This has been shown below:
Carbon Emissions by Tesla
 This has been anticipated that an internal combustion engine vehicle that is vehicles
which operates upon petrol generates around 69 tons CO2 emissions during its lifetime.
Moreover, The electric cars of TESLA, while one other side it manufactures only a
smaller portion of these which are illustrated below with assistance of figure:
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Water consumption by Tesla
 The annual water utilises per vehicle of Tesla which minimised from 5.2 cubic meters
into year 2018 to 2.9 cubic meters within year 2019. Moreover, it accounts for around
45% minimisation in single year.
Waste reduction as well as Recycling by Tesla
 Within year 2019, Tesla recycled around 1,000, 320 and 110 tons of Nickel, copper and
Cobalt.
Tesla other initiatives of CSR as well as Charitable donations
 Tesla provides around above 16, 000 persons by their disaster relief project in year 2018-
2019.
 The e- automaker serviced about 40 individual’s sites thereafter disasters into year 2018-
2019 (Impact of TESLA’s CSR REPORT, 2021).
Therefore, for instance, TESLA sold above 550,000 electric vehicles. It states that Tesla
vehicles have driven about 10 billion miles. Moreover, from these miles, it claims that around
282,000 metric tons of CO2 has been produced from their vehicles. In addition to this, it is an
amaze figure into perspective. For it, traditional automakers such as Ford have publicly
explained millions of CO2 metric tons have been released from its vehicles (Yunus, 2021).
3. Critically evaluate the impacts of the same two issues on Tesla. Here please relate strictly to
Tesla.
TESLA involves into a board variety of CSR as this has a stakeholder management tactics.
Moreover, this undertakes requirements of both energy as well as automotive stakeholders. Other
than vehicles manufacturing, Tesla have a plant for producing solar panels and another energy
accessories. In addition to this, solar panels manufacturer minimizes overreliance within
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unsustainable energy sources like nuclear and coal. Corporate social responsibility is undertaken
as the management aspects where by firms integrate environmental as well as social concerns
within its business practices and interactions with its stakeholders (Flynn and et. al., 2019).
TESLA always seeks towards sustainable energy to power their facilities. It attains this through
utilising solar energy systems as well as battery storages. In respect of TESLA’s CSR, they
incorporate minimising the dependence of petroleum cars through facilitating green energy
source to power car engines. Additionally, the e-cars manufacturer essentially decreases carbon
emission within environment, thereby hostility change in climate, global warming as well as
acidic rainfall.
The pros and cons of CSR practices for TESLA.
Pros:
Improved firm image: Embracing a CSR policy, paired with effective action and may
serve to develop business image of TESLA. In case, the behaviours of firm forms a adverse
backlash which drives towards lost profit- over ecological problems such as, CSR become
method for repairing damages of image and gain profits. In addition to this, within other cases,
adapting effective policy performs as a part of business crucial brand and clients often explains
loyalty to brands which may explain involvement to environment concerns (Foroudi and
Palazzo, 2021).
Cons:
Costs: This highlights one of the largest arguments against adapting the corporate social
responsibility as a policy. Moreover, sessions to minimise ecological affects often needs
expensive modification into equipment or continuous costs without any clarified way for
recouping that losses (Grima and et. al., 2019). In addition to this decision for maintain national
manufacturing facilities or buying from national manufacturer of TESLA instead of outsourcing
or moving manufacturing overseas may leads cost for respective business.
TESLA is known to be one of the leading vehicle manufacturers. Moreover, it is an
American e- vehicle as well as clean energy firm that is based in Palo Alto, California, US. In
addition to this, respective entity also manufactures as well as develops electric cars, battery
energy storage from home to grid scale, solar roof tiles, solar panels and associated goods or
services. Additionally, this is developed in year 2003 by American entrepreneurs named as
Martin Eberhard and Marc Tarpenning as well as was named after Serbian American inventor
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called Nikola Tesla. Along with this, Tesla motors were formulated to form electric sports cars.
So, Tesla concentrates upon ecological friendly initiatives; this would also undertake cost of
products for developing competitive advantages within sector. Moreover, firm may utilise
modern production technologies for minimising operative costs (OZYER and DÖVEN, 2019).
For it, rather than utilising traditional employment shops within electric cars production, business
might utilise mass manufacturing techniques for taking benefits of economies of scale. Within
larger scale, system of production, inventories backtracking are reduced as well as operations
scheduling is simplified thereby minimising costs. In addition to this, mass production employs
particular intent machines which do not needs technical workers to perform. Therefore,
respective firm may minimise their wages cost through utilising particular intent machine inline
manufacturing. Also, line balancing may also be applied for reducing idle time, obviate waste
and minimise work into progress inventories that decreases their cost of products (Srinivasan,
2021).
CONCLUSION
As per the above report, it has been concluded that, at present time contemporary issues are
enhancing into business management. As it is the problems which are recently impacting the
individuals or areas as well as which is unsolved. Moreover, these are the challenges that
incorporate management of human resource, manufacturing and practices, marketing and
finances problems atmosphere the success of firm as well as business as whole. Apart from this,
CSR practices as well as sustainability practices have essential impacts upon business. As
Corporate social responsibility is undertaken as the management aspects where by firms integrate
environmental as well as social concerns within its business practices and interactions with its
stakeholders. Also, sustainable practices are considered as the procedures services that employ
for maintain the qualities which are valued within physical atmosphere.
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REFERENCES
Books & Journals
Abor, J.Y., Adjasi, C.K.D. and Lensink, R. eds., 2020. Contemporary Issues in Development
Finance. Routledge.
Chang, C.L. and Vo, D.H., 2020. Contemporary Issues in Business and Economics.
Flash, A. and et. al., 2020. Contemporary Issues in Business Economics and Finance. risk, 60,
p.136.
Flynn, M. and et. al., 2019. Advances in the Technology of Managing People: Contemporary
Issues in Business.
Foroudi, P. and Palazzo, M., 2021. Introduction to contemporary issues in sustainable branding:
Ethical, social, and environmental perspectives. In Sustainable Branding (pp. 1-7).
Routledge.
Grima, S., and et. al., 2019. Contemporary Issues in Behavioral Finance. Emerald Group
Publishing.
OZYER, K. and DÖVEN, M.S., 2019. Contemporary Issues in Business & Economics (ICCIBE)
October 4-6, 2019 Tokat-TURKEY.
Srinivasan, R., 2021. Contemporary Issues in Platforms. In Platform Business Models (pp. 315-
328). Springer, Singapore.
Yunus, S., 2021. Bukti Korespondensi Journal of Contemporary Issues in Business and
Government.
Трацевская, Л.Ф., 2021. Innovation Aspects of Organizing Contemporary Business
Management. Право. Экономика. Психология, (1), pp.75-79.
Online
About Tesla, 2021. [Online]. Available through:< https://www.tesla.com/en_GB/ABOUT>
Tesla Revenue Breakdown And Estimated Sales Growth, 2021. [Online]. Available through:<
https://stockdividendscreener.com/auto-manufacturers/tesla-quarterly-total-revenue-
analysis/>
Impact of TESLA’s CSR REPORT. 2021. [Online]. Available through
<https://www.tesla.com/ns_videos/2019-tesla-impact-report.pdf>
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